Qantas sells assets at Melbourne Airport, paving the way for upgrades to Terminal 1

Melbourne Airport is getting set to build a range of new shops, restaurants and high-end attractions at some of its busiest thoroughfares after Qantas sold off its Terminal 1 infrastructure for $355 million.

Melbourne Airport will build a range of new shops and restaurants at some of its busiest thoroughfares after Qantas sold off its Terminal 1 infrastructure for $355 million.

The airline signed a lease for another ten years at the terminal on Thursday but also struck a deal with airport executives to sell vital assets, such as its retail precincts and baggage handling equipment.

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Melbourne Airport chief executive Lyell Strambi.

Melbourne Airport chief executive Lyell Strambi said the purchase would allow them to get to work reopening closed locations and invest in building new high-end attractions.

“First and foremost we want to improve efficiency and reduce the stress of travel, but our research tells us that today’s passengers are looking for more,” he said.

“Better range and choice of what they eat and drink, and retail options to satisfy everything from travel essentials to luxury.

“This is a very important step for us. It will support the ongoing commercial success of our largest customer here in Melbourne, while creating more capacity and greater choice for passengers.”

The move also paves the way for Melbourne Airport to bring international flights to Terminal 1 as it researches how to increase airport capacity.

Staff are investigating the use of “swinging gates”, which would result in domestic terminals being used for global trips during quiet periods.

Qantas Group chief executive Alan Joyce said the airport was vital to the airline.

Qantas has sold off its Terminal 1 infrastructure at Melbourne Airport for $355 million. Picture: Jason Edwards

“It’s great that Melbourne Airport was prepared to take a commercially rational approach to make this deal possible,” he said.

“It’s one end of the second busiest route in the world, between Melbourne and Sydney. It’s the home of Jetstar, and it has just benefited from a major investment in our lounges.”

“Unfortunately, the current system doesn’t have an independent arbitrator for airports that aren’t commercially rational, which creates a stalemate around these critical pieces of infrastructure.

“That’s why we’re continuing to argue for regulatory change.”

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